RRSP Benefits Now
An RRSP Contribution can generate an income after filing your taxes. The contribution can be deducted from your income.
In Ontario if someone makes 50,000/year in 2019
They will pay $8,733 in income tax.
From that they will have a take home income of $41,267
Let’s say a contribution of $5,000 is made towards an RRSP.
That gives a taxable income of $45,000
Income tax on a salary of $45,000 in Ontario is $7,152.
Remember, they would have already paid $8,733 of income tax throughout the year taken from their pay check.
If you subtract what actually should have been paid, $7,152, because of the RRSP contribution from what was paid, they would have a refund of $1,581.
Be sure to speak with a trusted, qualified financial advisor to make sure an RRSP is right for you.
We would love to hear from you if you have any questions.